St. Michael Council to Vote on 2012 Budget Tonight

The will vote on a 2.5 percent increase for the 2012 budget, setting the course for payments on expansive projects such as the one-way pair, the downtown redevelopment project and the new city center in the process.

Proceedings will be held tonight at 7 p.m., beginning with the annual Truth in Taxation process, where residents can give their input on the city's annual budget before it is voted on by the council.

A copy of the budget overview is attached to this article.

The average home value in St. Michael now is about $197,000. Under the 2011 budget, that homeowner will pay $636 in taxes to the city. That's down, a few dollars, from 2010. The 2012 rate would be on that line, or a bit less for some properties.

The 2 percent increase in spending is caused by two bonded projects. The city will pay $450,000 in 2012 (its largest payment to date) for the Highway 241/downtown revitalization project, and another $171,000 to the new senior center/library/city hall.

The 2012 budget sets the general levy at about $4.21 million, up less than $100,000 from 2011. The increase will come from property values adjusted through the state after it voted to expire the Market Value Homestead Credit act.

The city will increase its payment to the Economic Development Authority $25,000, to $90,000 in 2012. Other budget line items are two abatements–for J&B Meats and U.S. Water–totaling about $34,000.